If you've been renting for a long time, you may be so comfortable, you've given up on the thought of home ownership. But before you write off the option of home ownership, be sure to compare your rent versus mortgage payments on an after-tax basis. After comparing these two options, if the mortgage payment still appears too high, don't just throw in the towel. There are several creative options to overcome what seems like a monstrous monthly payment.
One option to afford a home in a nice neighborhood is to seek out several roommates who pay you rent. If the circumstances work out, your rental income could cover over half of the mortgage payment and a significant portion of the utilities. After calculating tax benefits and increasing equity, it's possible for you to make money. Additionally, when the loan is paid off, you would own an asset free of any liens and encumbrances. Time and time again, many singles and couples have taken advantage of this creative arrangement to enter the housing market. Other options to consider include:
1) Construct a guest unit you can rent out for income.
2) Reduce your monthly loan payment by switching to a low adjustable rate loan. In light of the recent melt down in the mortgage business, you should consult with an experienced mortgage agent or real estate lawyer prior to locking yourself into this type of loan.
3) Slash your monthly mortgage expenses by signing up for a graduated payment loan.
4) Sign up for a balloon mortgage to cut your monthly expenses.
5) Ask your Realtor about the option of purchasing income producing property such as a duplex, triplex, or other similar property to help lower your monthly mortgage costs.
6) Inquire with a local mortgage agent to see if a mortgage credit certificate program (MCC) exists in your area. Under this program, the government offers you mortgage aid up to $2000 each year.
7) Seek out a part time job to increase your monthly income.
8) Talk to your employer about increasing your salary or offering you housing assistance.
9) Explore the option of buying a property together with a family member or close friend.
10) Speak to a mortgage agent about the alternative of an interest rate buy down.
11) Explore the alternative of taking over a seller's existing low interest FHA or VA loan.
12) Acquire a low-equity rate buy down.
By implementing these techniques, you can effectively reduce your monthly loan expenses and free up more cash. If you have a goal to purchase a home in a nice neighborhood, you'll need to re-evaluate your monthly budget to squeeze as much savings as possible.
A great technique to help you evaluate where you spend the majority of your money is to list every monthly expense on a sheet of paper. While many renters dream of owning a home, they allocate most of their cash towards a new vehicle, expensive stereo's, eating out, and other similar cost that won't appreciate in value. If you're willing to discipline yourself to stay on a feasible budget, you'll make significant progress towards home ownership.
One option to afford a home in a nice neighborhood is to seek out several roommates who pay you rent. If the circumstances work out, your rental income could cover over half of the mortgage payment and a significant portion of the utilities. After calculating tax benefits and increasing equity, it's possible for you to make money. Additionally, when the loan is paid off, you would own an asset free of any liens and encumbrances. Time and time again, many singles and couples have taken advantage of this creative arrangement to enter the housing market. Other options to consider include:
1) Construct a guest unit you can rent out for income.
2) Reduce your monthly loan payment by switching to a low adjustable rate loan. In light of the recent melt down in the mortgage business, you should consult with an experienced mortgage agent or real estate lawyer prior to locking yourself into this type of loan.
3) Slash your monthly mortgage expenses by signing up for a graduated payment loan.
4) Sign up for a balloon mortgage to cut your monthly expenses.
5) Ask your Realtor about the option of purchasing income producing property such as a duplex, triplex, or other similar property to help lower your monthly mortgage costs.
6) Inquire with a local mortgage agent to see if a mortgage credit certificate program (MCC) exists in your area. Under this program, the government offers you mortgage aid up to $2000 each year.
7) Seek out a part time job to increase your monthly income.
8) Talk to your employer about increasing your salary or offering you housing assistance.
9) Explore the option of buying a property together with a family member or close friend.
10) Speak to a mortgage agent about the alternative of an interest rate buy down.
11) Explore the alternative of taking over a seller's existing low interest FHA or VA loan.
12) Acquire a low-equity rate buy down.
By implementing these techniques, you can effectively reduce your monthly loan expenses and free up more cash. If you have a goal to purchase a home in a nice neighborhood, you'll need to re-evaluate your monthly budget to squeeze as much savings as possible.
A great technique to help you evaluate where you spend the majority of your money is to list every monthly expense on a sheet of paper. While many renters dream of owning a home, they allocate most of their cash towards a new vehicle, expensive stereo's, eating out, and other similar cost that won't appreciate in value. If you're willing to discipline yourself to stay on a feasible budget, you'll make significant progress towards home ownership.
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Are you searching for the best Carmel homes for sale? See what these Carmel Realtors can do to help you find your dream home.
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